Steady as she goes… Maintain your course! It’s hardly an exciting market, although at times rather frustrating, but it does look as if we are back on track – at least for the most part. I never really like this type of development because the noise in the lower degrees tends to camouflage some of the key waves. In the end, it’ll work its way through, but there could still be testing times.
Yesterday was hardly an exciting day, with very little movement in general with the exception of GBP/USD that made a decision to baulk the recent trend. That we should expect more of the same in the Continental Europeans and Aussie does require GBP/USD to break from the general trend of the rest. If anything, it’s that which puzzles me most. The positive point from yesterday was that the follow-through allowed the identification of a 5-wave move that consequently clarified the earlier 3-wave move. That may sound backwards – but it’s a way of confirming the earlier, slightly uncertain, structure. So out of the non-JPY pairs, it’s only GBP/USD that provides an uncertain outcome.
As for the JPY pairs, it was EUR/JPY that benefited most but driven by EUR/USD. This looks like a steady development, but there’s always risk in the cross because of the higher degree of low level noise. However, with the expected movement in EUR/USD, we should see a similar day to yesterday. USD/JPY… phew… well, I didn’t like the deeper correction, but I still tend to favour the downside but this pair does have potential to go into one of its 3-year old hissy fits and sit and sit and scweam and scweam until it gets its own way. I think it should go down, but I’m not terribly confident it’ll come to much today…
Work with the Continental Europeans and Aussie. If USD/JPY drifts lower, then EUR/JPY could hitch a lift…